First Rental property at 20 years old

[Jacob Camilliere]

Hello all,

I am senior at University of South Carolina and am tired of paying rent!!!!

So heres the deal: For the past year I have been up my parents *** trying to convince them to buy a house in Columbia, Sc and pay me to be the property manager or let me live in it for free. One of my extended family members overheard me trying to convince my parents and they told me that if I developed a business plan and got the numbers together, they would consider helping me out.

So this is where im at now, I have successfully convinced my family member to co-sign a mortgage with me and contribute a portion of the down payment in a form of a loan to me. The house is $140,000 we plan on putting 10-15% down. I will contribute around $4,000 and he will contribute around $14,000.

He wants the terms of the loan to be $500 a month for 36 months to be compensated for the risk of him co signing the mortgage and loaning me the down payment. Once the loan is paid off, he will receive 20% of monthly profit and 20% equity in the house.  are these fair loan terms??

Just a little about the property: it is in a gated student community of single family homes. Was built in 2008 and has 100% occupancy since it was built. Rents for $1800 a month and increases every year. HOA is $230, and they have onsite property managers at 7.5% of (Gross rent-Hoa). I Estimated for taxes and insurance to be roughly $200 a month total. My predicted monthly cash flows are around $550.

let me know if those terms are fair or if I should counter him with something else